Mortgage transfer
Mortgage transfer
Mortgage transfer can be more advantageous than new borrowing, as borrowing costs can be avoided. It is allowed to transfer the mortgage loan of the Housing and Infrastructure Agency from a property that is being sold to another property owned by the seller, but the general rule is that the loan must be less than 80% of the mortgaged space of the new property.
If there is a special case, such as due to the transfer of the applicant between business areas or a move to a cheaper apartment, the Board of Housing and Infrastructure is authorized to deviate from the rules on mortgage limits for real estate when transferring a mortgage loan, as long as the mortgage does not exceed 100% of the appraised value of the property. Such an exemption must be applied for separately to the HMS board, with a statement stating the applicant's circumstances and the reasons for the application. In such cases, a payment assessment must be carried out. The provision on the maximum property value does not apply in the case of a mortgage transfer.
Please note that in the case of increased borrowing in parallel with mortgage loan transfers, the applicant must undergo a payment assessment. For each issued document, a fee is charged according to the tariff in each case. It is added to the loan and will be collected on its next due date.
Required accompanying documents with the application:
- Agreed, signed and certified purchase offer for both properties together with a sales summary.
- Transcript from the register of liens for both properties.
- If applicable, the status of loans that continue to be registered liens on the property to which the loan is to be transferred, i.e. with priority over HMS's loans in the mortgage order or copies of new loans that have priority over HMS's loans in the mortgage order.
- In the case of increased borrowing at the same time, a credit rating is required and data must be submitted as if it were a new loan.
Application for mortgage transfer